U.S. markets experienced significant losses, with the S&P 500 dropping 13.7% and the Dow Jones losing nearly 10%, amid concerns over new tariffs from the Trump administration. Investor anxiety spiked with potential retaliation from countries like China and worries about a trade war. The economic outlook shifted, prompting expectations for multiple interest rate cuts by the Federal Reserve in 2025. Manufacturing activity fell into contraction, and while the labor market added jobs, the unemployment rate slightly increased, indicating a complex economic environment. Markets now await clearer data before making further policy adjustments.
U.S. markets experienced their steepest weekly losses in over five years due to broad and unexpectedly steep tariffs announced by the Trump administration.
With major indices dropping significantly, small-cap stocks faced even larger declines, signaling investor concerns over a fluid trade situation and potential global economic repercussions.
Federal Reserve Chair Jerome Powell acknowledged the economic risks posed by tariffs, stating that while the economy is fundamentally sound, clearer data is needed before policy adjustments.
Despite the negative impact of tariffs on manufacturing, the labor market showed strength in March, adding 228,000 jobs, though the unemployment rate rose slightly.
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